The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-02-17
GALVESTON.
Further Particulars of the Great
Failure of Block, Open
heiner & Co.
The Bulk of the Loss Falls on
Eastern Creditors Other
State News.
Special Telegram to the Statesman.

Special Telegram to the Statesman.
GALVESTON, February l5.- The wholesale dry
goods and boot and shoe house of Block, Open
heimer 81 Co., filed for record this morning the
transfer of their entire stock, also their business
premises, in payment of obligations due to local
creditors These local debts aggregate $225,1S1,
chiefly owing to banks and local capitalists, who
endorsed for the firm. The stock was invoiced
and turned at 70 cents on the dollar aggregat
ing 1904 $40, The building and fixtures were trans
ferred at the net valuation of $20,UC1, less the
reach $750,0)0, nearly all OF which, except that
which Is secured as above, is owing in New YORK
city Over ST., 900 is owing to ii. b. Chafiin & co;
The members of the firm are Louis Block, Leopold
Oppenheimer Elsie Michael, Jacob Sonnenthiel
and Sylvan Leon Mr.. Leon is now In New YORK,
where he has been since the first of January. 1t is
stated that nearly all the eastern creditors are un-
secured; also, that many book accounts and notes
due the firm at the time of the transfer are of
doubtful value. The firm has been doing poor
business far the past three years.
The failure of Black. Oppenheimer u Co., was
a general surprise to the business community
The true condition of their affairs was known to
very few, and it is said the firms credit with banks
in New York and Galveston was good for a large
amount up to the last moment. The local indebt
edness aggregating $225, ,7S7, is fully secured by
transfer OF stock and building previously stated
Ameng the larger local creditors are:
The banking firm of Ball. Hutchings & Co.
5000.
Isaac Hsidenheimsr, $4,000.
Gus Heye & Co., Sl7,5C).
Heidenheimer & Co., $4,000.
Adone & Labit, $4,000,
Heirs of Louis Michael "a deceased partner,
S70,000
Mrs Michael, who was a member of the firm,
loses some S160,0CJ but her children figure as pre-
ferred creditors. The above seems to represent
the trust losers to the rm hence their preference
Until recently the firm owed nearly S2yC,CJO in
trust loans in New York. but since the LIST of Jan
uary these eastern trust firms have been paid to
the extent of Sl75,000, the money for such pay
ments having been borrowed from Galveston
firms.
The failure was precipitated by Mr.. Leopold
Oppenheimer, New York resident partner, Who it
is said, broke down under the heavy load carried
by the house, and telegraphed his partners here
last Saturday night that their paper would 90 to
protest in New York to-day, CGues5a and his
telegram was communicated to local CT ditors ana
resulted in the transfer of stock to them.
Alderman Albert Weis, OF the firm of Wei5 Bros,
wholesale clOthiers, has been chosen trustee to
represent purchasers and will dispose of the stock
OF continue the business for the time being But
little can be ascertained here regarding eastern
creditors, except the fact that debts aggregating
nearly half. million dollars are entirely uL-
secured
The failure is the largest and most serious that
has occurred here in fourteen years Business
men attribute TIE same to the heavy country CreIit
carried by the firm 1t is said nearly 81 30 is
owing the firm from country merchants
a large portion of these claims are several year.
old, and -Na firm has been carrying them along AZ
leayy eapenee, until tine burden became TOO great
They col Id easily have borrowed sufficient to carry
chem along another 2easUn, but Open
heim9r became thoroughly discouraged at
the 0UtloOk, and, as previously stated,
applied the money sent him at New Yerk
towards paying trust and accommodation debts,
and then Rotifed his partners that he had m>i3 no
arrangement 10 meet certain commercial debts
falling due. Mr.. Leon and Mr. Oppeuhemer are
expected here in the course of the next week.